Door to door sales - Australian Competition and Consumer

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1. About this guide
When you buy goods or services from a door to door sales agent, you have rights under the law.
The Australian Consumer Law provides a set of national laws that cover door to door sales, which give
you specific protections such as the right to ask them to leave, receive certain information, and to cancel a
contract within a ‘cooling off’ period. The Australian Consumer Law also provides you with other rights
that apply to door to door sales agents, for instance the right not to be misled and to be treated fairly.
Many people feel pressured to buy products and services when approached at home by a door to door
sales agent. This guide will help you deal with sales people at your door confidently and exercise your
rights.
Remember:
It’s ok to say no—if you are approached by a sales agent at your door, you don’t have to agree
to anything.
If you want a door to door sales agent to leave, tell them—they must leave immediately.
You do not have to agree to anything on the spot—if you feel pressured to sign something, tell
the sales agent you want time to consider the offer.
If you’re thinking of switching service providers, such as for energy or phone services, contact
your current provider to check if you’re signed up for a set amount of time and if any
cancellation costs will apply.
It’s ok to change your mind—if you agree to buy from a door to door sales agent but later decide
the offer’s not for you, simply exercise your ‘cooling off’ rights.
For more information about your consumer rights, including for other sales methods, check out the
Australian Competition and Consumer Commission website www.accc.gov.au
2. Door to door consumer rights—snapshot
Your door to door consumer rights apply when the sale of goods or services results from an ‘unsolicited
consumer agreement’ (see chapter 3 of this guide).
If what’s on offer is valued at over $100 (or the value can’t be determined when the offer is made), the
agent must follow rules around how and when they can come knocking, what information they must give
you, and your right to change your mind.
Your consumer rights at the door
A sales agent who contacts you at your door must:

leave immediately if you ask them to and not return for 30 days

not visit you at all on Sundays or public holidays, before 9 am or after 6 pm on weekdays, and
before 9 am or after 5 pm on Saturdays without your permission

show you their identity card and tell you their name, the contact details of the company they
represent and why they are at your door

tell you about your right to cancel the contract if you change your mind.
Your right to receive certain information
If you decide to buy at your door, the sales agent must provide you with an agreement to sign that contains
certain information about what you are purchasing such as all terms in full, the total cost (or how this will
be calculated if the total cost is unknown), and the sales agent’s and seller’s contact details.
The document must also contain information about your rights to cancel the agreement, and a form to
exercise these rights if you change your mind.
Your right to change your mind
If you change your mind, you can—you have a 10 day ‘cooling off’ period to cancel the agreement. In
some cases, your right to ‘cool’ off may be longer if the sales agent failed to abide by the law.
A seller can supply goods to you during the cooling off period if they cost $500 or less. However, they
cannot supply you with any goods that cost over $500. They also cannot supply you with any services
during the cooling off period, with the exception of electricity or gas services to households not already
connected or where there is already a connection but no supply.
A seller cannot request or accept payment from you during the cooling off period, unless it is for the
supply of electricity or gas.
Even if a seller supplies you with goods or energy during the cooling off period, you still have the right to
change your mind and ‘cool’ off.
Energy sales
In addition to your rights under the Australian Consumer Law, you may have additional protections
provided by industry‑ specific laws. Energy is an example where this is the case. In states and territories
that have commenced the National Energy Retail Law, energy salespeople that market door to door must:

observe no canvassing signs (such as ‘do no knock’ or ‘no advertising material’)

maintain a ‘no contact list’, which means you can advise an energy retailer that you do not wish
to be contacted by them

provide you with an energy price fact sheet for each offer they are marketing, which clearly sets
out all of the offer details including key terms and conditions.
To learn more, visit the Australian Energy Regulator’s Energy Made Easy website
www.energymadeeasy.gov.au. Energy Made Easy has simple and easy to read information about a range
of topical energy issues including comparing energy offers, energy efficiency, contracts and bills, and
consumer rights.
REMEMBER: If you’re thinking of switching service providers, contact your
current provider to check if you’re signed up for a set amount of time and if
any cancellation costs will apply. Ask yourself: is the offer you are
considering still the best deal after you’ve factored in exit fees?
Financial products and services
If someone approaches you at home—whether it be at the door or over the phone—offering you
investments or financial advice, tell them to leave. An unsolicited offer of shares, financial advice or
products is generally illegal. If the offer sounds too good to be true, it may be a scam and any money you
provide will be lost.
If you want financial advice, make sure you only deal with a licensed financial adviser—by law, anyone
offering you financial advice or products must have an Australian Financial Services licence issued by the
Australian Securities and Investments Commission (ASIC).
Find out more about financial services and products at ASIC’s MoneySmart website
www.moneysmart.gov.au.
3. What is an ‘unsolicited consumer agreement’?
The door to door consumer protections under the Australian Consumer Law apply only to ‘unsolicited
consumer agreements’. This type of agreement occurs when:

it results from negotiations by phone or at a location other than the seller’s place of business;
and

a seller, or their sales agent, approaches or calls you uninvited; and

the total value is more than $100 (or cannot be determined when the agreement is made).
Examples
A sales agent approaches a consumer in their home to buy a vacuum cleaner for $400.
This is an unsolicited agreement because the consumer did not ask the sales agent to
contact them, the contact did not take place at the seller’s business premises and the
total cost was more than $100.
A consumer contacts a curtain seller and asks a sales agent to visit their home to
measure their windows for curtains and provide a quote. The sales agent says that if
the consumer places an order for the curtains that day, they will get a 10 per cent
discount. The consumer only asked for a ‘measure and quote’, not to actually purchase
the curtains, so this would be an unsolicited consumer agreement.
The most common forms of sales methods that can lead to an unsolicited consumer agreement are door to
door selling, telemarketing and when you are approached by a sales agent in a shopping centre.
Unsolicited agreements can also occur if:

you provide your contact details to a business for one purpose, for example a competition entry,
and the seller contacts you for a separate purpose, to sell another product or service to you

you return a missed call from a seller or respond to any unsuccessful attempt by them to contact
you.
Example
A sales agent approaches a consumer in a shopping centre away from their shop or
stand to sell educational software costing $850. This is an unsolicited consumer
agreement because the consumer did not ask to be contacted.
Exclusions
If the purchase price of the product or service sold to you at your door is $100 or less, the Australian
Consumer Law door to door sales protections do not apply.
Example
A consumer purchases a pack of cleaning products from a door to door sales agent at a
total cost of $85. The consumer then changes their mind. However, because the
contract value was less than $100, it is not an ‘unsolicited consumer agreement’ and the
consumer does not have ‘cooling off’ rights.
Some door to door sales agreements are not unsolicited consumer agreements, such as:

business contracts for goods or services not usually for personal, domestic or household use or
consumption

when a seller contacts you and asks if you would like to renew an existing sales agreement such
as for a home telephone service

sales that occur at party plan events, when the host makes it clear that you are invited to the party
to be sold something, and at least three people are invited.
Example
Six consumers are invited to a friend’s home to view a demonstration of children’s
books for sale. One consumer orders over $300 worth of books but the following day
decides she wants to cancel the order. However, she has no right to ‘cool off’ since the
sale took place at a party plan event.
Donations to charity, where no sale is involved, are not unsolicited consumer agreements. This includes
donations received by a third party or contractor on the charity’s behalf.
However, you have other consumer rights that may apply—see chapter 6 for more information.
4. Your consumer rights at the door
This chapter provides a summary of your rights when a door to door sales agent comes to your door.
Sales agents can only contact you on specific days and times
It is unlawful for a sales agent to come to your door:

on a Sunday or public holiday

before 9 am or after 6 pm on a weekday

before 9 am or after 5 pm on a Saturday.
However, a sales agent can visit you at any time if they arrange an appointment with you beforehand.
Sales agents must leave when asked
A sales agent must explain to you that they are required to leave your premises at your request.
If you ask a sales agent to leave, they must do so immediately—it is unlawful for them to stay.
A sales agent must not contact you on behalf of the same seller again for at least 30 days for the purpose
of negotiating an unsolicited consumer agreement (or for an incidental or related purpose). However, it is
common for sales agents to sell on behalf of a number of companies or businesses. If you have asked a
sales agent to leave, the same agent can visit you again about goods or services they are selling for another
business.
TIP: If you do not want any door to door sales agents approaching you at
home, place a prominent sign stating this near your door. Order or
download a ‘Do Not Knock’ sticker and other materials at
www.accc.gov.au/doortodoor
The sales agent must show identification
Before making a sales pitch, a sales agent must clearly inform you why they are there and provide
identification. The identification must include the sales agent’s name and the contact details of the
business they represent.
The agreement document must be clear and complete
If you are interested in buying goods or services from a door to door sales agent, any agreement must:

be written in clear and plain language that is easily understood

include all terms in full

include the total cost to you (including GST if applicable), or how this will be calculated if the
total cost is unknown at the time of making the agreement

include any postal or delivery charges you will have to pay

contain the sales agent’s name and contact details

include the seller’s contact details (their physical business address, email and fax number) and
Australian Business Number or Australian Company Number

be signed by you and the sales agent

be clearly written or printed, although any changes may be hand written and signed

contain information about your rights to cancel the agreement including a notice on the front
page

come with a form of notice that you can use to cancel the agreement.
Important information on the front page of the agreement
The front page of the sales agreement must include a prominent notice that tells you about your right to
cancel the agreement within a specific time period (or to ‘cool off’).
REMEMBER: Your signature is valuable—do not sign a document without
reading it in full first. You do not have to agree to anything on the spot.
5. Changing your mind and ‘cooling off’
If you agree to buy from a door to door sales agent under an unsolicited consumer agreement, you have 10
business days to change your mind. This is called a ‘cooling off’ period and the sales agent must tell you
about it before you sign.
If, during this time, you decide the offer is not right for you (for any reason), even though you have
signed a contract, you can still cancel the agreement without any penalty.
Length of the cooling off period
The cooling off period is 10 business days starting at the beginning of the first business day after the day
on which you signed the agreement.
The cooling off period can be extended to three months if the sales agent:

approached you outside the permitted hours

did not disclose the purpose of their visit or their identity

did not leave when you asked.
The cooling off period can be extended to six months if the sales agent:

did not tell you about the cooling off period

did not give you a copy of the agreement

provided services within the cooling off period or provided goods that cost over $500 within the
cooling off period.
Example
A sales agent approaches a consumer at their home promoting the bundled supply of
gas and electricity at a special price that is cheaper than the consumer’s current supply
arrangements. The consumer agrees to ‘switch’ energy providers.
The sales agent visited the consumer during permitted hours and told them the purpose
of his visit but he did not mention the 10 business day cooling off period. Because he
failed to mention this, the consumer has the right to cool off and cancel the agreement
for an extended period of six months.
Associated agreements are also cancelled if you cool off
If you choose to cancel an agreement during the cooling off period, any related contracts or agreements
are also void.
Example
A consumer is approached by a door to door salesperson and agrees to buy a washing
machine for $900. As part of the sale, there is an associated agreement to service the
washing machine.
If the consumer decides to exercise their cooling off rights and cancel the contract to
buy the washing machine, the related service contract is also cancelled.
How to exercise your cooling off rights
You can cancel an agreement verbally or in writing. If you cancel with a written notice, you can do so by
emailing, faxing, posting or personally delivering the notice to the seller.
Cancellation of the agreement is effective from the date on which you provide the notice. The notice does
not have to be in any specific form. To make it easier, a cancellation notice template has been included at
the end of this guide.
If you send your cancellation notice by post, it is taken to have been given to the seller at the time you
posted it. Keep a record of this date and, if possible, any proof of postage.
Receiving goods or services during the cooling off period
The seller can supply goods to you during the cooling off period if they cost $500 or less. However, they
cannot supply you with any goods that cost over $500.
They also cannot supply you with any services during the cooling off period, with the exception of
electricity or gas services. During the cooling off period an energy seller can provide electricity or gas to a
household not already connected to these services or where there is already a connection but no supply.
No payment during the cooling off period
A seller cannot request or accept payment from you during the cooling off period.
It is unlawful for the seller to request or accept payment from you for 10 business days starting at the
beginning of the first business day after the day you signed the agreement. However, this does not apply
to the supply of electricity or gas.
If you have cancelled the agreement and made any payment, the seller must refund your money. You must
return any goods that have not been used.
Returning goods after cooling off
If you cancel the agreement during the cooling off period, within a reasonable time you must do one of the
following:

return any goods to the seller

notify the seller where they may collect the goods. The goods become your property if the seller
does not collect them within 30 days of you cancelling the agreement.
Paying compensation
When you cancel an agreement, you will be responsible for paying compensation to the seller for any
damage to, or depreciation in the value of the goods. However, you are not responsible for any damage or
depreciation due to normal use of the goods or to circumstances beyond your control.
REMEMBER: It’s ok to change your mind—if you agree to buy from a door
to door sales agent but later decide the offer’s not for you, simply exercise
your ‘cooling off’ rights.
6. Other protections and penalties
Pressure and harassment
Many consumers complain that they feel pressured to buy from door to door sales agents. A sales agent
cannot use physical force, coerce or harass you when selling goods or services.
Harassment is when a salesperson contacts or communicates with you unnecessarily or excessively to the
point where you feel intimidated, tired or demoralised.
Coercion is when a salesperson uses or threatens to use compulsion or force, which restricts your choice
or freedom to act.
Example
A door to door sales agent visited consumers in a retirement village complex. The sales
agent said that because the management of their complex was changing, their power
would be cut off unless they changed energy suppliers. The sales agent said that they
would need to change suppliers immediately to maintain their power supply. Almost all
of the consumers approached signed up.
The sales agent’s statements could be considered coercion.
False or misleading representations and unconscionable conduct
Consumers often complain that they only agreed to buy from a door to door sales agent because they were
misled or deceived about the offer.
Some consumers, especially those that may be disadvantaged or vulnerable, may also have been the target
of high pressure sales tactics, such as refusing to take ‘no’ for an answer, that are so extreme that the sale
can amount to unconscionable conduct.
The Australian Consumer Law protects consumers from unfair sales tactics that may include pressure,
harassment, false and misleading representations or unconscionable conduct.
Example
The ACCC took action against a trader who was selling educational materials to
Indigenous communities in the Northern Territory. The Court found that the trader had
engaged in unconscionable conduct by taking advantage of the lack of education or
commercial experience of the consumers involved.
In this case the trader did not provide the consumers with a copy of a written contract
as required. He was also aware that they lived in poverty, there were cultural
differences and they lacked experience in business matters. The trader did not advise
the consumers of any overpayments made and did not hold the overpayments so that
they could be returned.
The Court ordered the trader to pay over $26 000 in compensation to the eight
consumers, banned the trader from doing business in vulnerable communities and
placed restrictions on his receipt of automatic payments for goods and services in the
future.
ACCC v Keshow [2005] FCA 558
Consumer guarantees
You have the right to expect that what you buy—whether it be at your door, over the phone, in a shop or
online—does or performs as it is supposed to. If a problem arises with a product or service, you may be
entitled to a repair, replacement or refund.
Waiving your rights
You cannot waive or sign away any of your legal rights explained in this guide and it is unlawful for a
seller to persuade (or attempt to persuade) you to do so.
Sellers must ensure that their sales agents are fully aware of all their legal obligations before they come to
your door. If they do not, both sellers and the sales agents may be liable for breaking the law.
Penalties
If a sales agent or seller fails to comply with the unsolicited consumer agreement provisions, they may be
subject to fines or civil penalties of a maximum of $50 000 for a body corporate and a maximum of $10
000 for a non-body corporate.
If a trader engages in the following unfair sales tactics—pressure, harassment, false and misleading
representations or unconscionable conduct—they can face a range of court orders and penalties up to $1.1
million for a body corporate or $200 000 for an individual.
7. Taking action
If you have decided that you want to cancel a door to door sales agreement, simply exercise your cooling
off rights—follow the guidance in chapter 5.
If you experience a problem that breaches any of your consumer rights—for instance, you felt that you
were pressured, misled, or what you bought fails to work or perform as it should—there are three steps
you can take to try to resolve it.
Step 1—Contact the seller
Contact the seller as soon as possible to explain the problem and the outcome you want. It is a good idea
to formally put your concerns in writing. That way, the seller is clearly aware of the problem and what
you want, and you also have a record of your contact with them.
A letter or email of complaint should:

explain the problem

explain the outcome you want

outline the steps you will take if you and the seller cannot resolve the problem

ask for a response within a reasonable time—for example two weeks or 10 business days.
Make sure you keep copies of any letters, emails or documents that you send. The seller may ask you to
provide some evidence that you entered into a door to door sales agreement with them for goods or
services. This may be a copy of the agreement, a bill, a receipt or a customer account number.
Step 2—Contact the ACCC or another third party
If you believe your rights have been breached by a sales agent or seller and you are either having
difficulty resolving a complaint or are not sure what to do next, you may want to seek assistance. The best
place to go will depend on your circumstances.
When the ACCC can help
The ACCC can give you information about your consumer rights and obligations, and suggest possible
courses of action you can take. In some cases it may also be able to investigate and take action when a
seller or sales agent fails to meet obligations under the Australian Consumer Law. These decisions are
made in line with the ACCC’s Compliance and Enforcement Policy (available at www.accc.gov.au).
State and territory consumer protection agencies
If you cannot negotiate a satisfactory outcome with the seller, you can contact the consumer protection
agency in your state or territory. They can provide you with information about your rights and options.
They may also be able to conciliate (negotiate) between you and the seller to reach a resolution.
Industry ombudsmen and dispute resolution schemes
Some industries including the energy, water and telecommunications industries provide free complaints
services through an ombudsman or an independent dispute resolution scheme.
See chapter 8 of this guide for a list of contact details.
Step 3—Take legal action
Consider getting independent legal advice about what options are available that suit your circumstances.
Small claims courts and tribunals
You may be entitled to take your complaint to the small claims court or tribunal in your state or territory.
Private legal action
For disputes involving large sums of money, you may be able to take private legal action. Make sure that
you get legal advice and information from the relevant court or tribunal first, as legal action can be
expensive and there is no guarantee that you will be successful.
8. Contacts
The Australian Competition and Consumer Commission
ACCC Infocentre: 1300 302 502
ACCC Indigenous Infoline: 1300 303 143
www.accc.gov.au
Translating and Interpreting Service for information in languages other than English: 13 1450
TTY users: 133 677
Speak and Listen users: 1300 555 727
Internet relay users: National Relay Service www.relayservice.com.au
State and territory consumer protection agencies
Australian Capital Territory
New South Wales
Office of Regulatory Services
NSW Fair Trading
Ph: (02) 6207 3000
Ph: 13 3220
www.ors.act.gov.au
www.fairtrading.nsw.gov.au
Northern Territory
Queensland
Consumer Affairs
Office of Fair Trading
Ph: 1800 019 319
Ph: 13 7468
www.consumeraffairs.nt.gov.au
www.fairtrading.qld.gov.au
South Australia
Tasmania
Consumer and Business Services
Consumer Affairs and Fair Trading
Ph: 13 1882
Ph: 1300 654 499
www.ocba.sa.gov.au
www.consumer.tas.gov.au
Victoria
Western Australia
Consumer Affairs Victoria
Department of Commerce
Ph: 1300 558 181
Ph: 1300 304 054
www.consumer.vic.gov.au
www.commerce.wa.gov.au
9. Sample cancellation notice
sourced from www.consumerlaw.gov.au
10. ‘Know Your Rights’ checklist
Before you agree to buy something from a door to door sales agent, follow these 10 tips to make savvy
choices in what you buy and how to uphold your consumer rights.
‘Know your rights when a sales agent knocks’ checklist
1. Are you feeling pressured to accept an offer from a sales agent at your door? Assert your
rights—tell them ‘no!’ and they must leave immediately. You don’t have to sign or agree
to anything on the spot.

2. Have you shopped around and compared prices? Make sure you’re getting the best
deal—see what other offers are out there.

3. Did you know that for some products or services, the Government has developed tools or
rules to help you compare? The Energy Made Easy website
(www.energymadeeasy.com.au) can help consumers in participating states or territories
easily compare energy offers. Telecommunications service providers also have to
provide you with certain information that will help you compare services.

4. Before you sign up to anything, ask yourself: does the offer meet your needs?
For instance if you’re renting, a fixed term energy contract might not work for you.

5. Are you thinking of switching providers for energy or telecommunications services?
Contact your current provider to check if you’re signed up for a set amount of time and if
any cancellation costs will apply. Make sure the offer you’re considering is still the best
deal after you’ve factored in exit fees.

6. If you have switched service providers, did you cancel your current contract? Double
check the last and first bills at the time of switching to make sure you’ve only been
charged once for the same billing period.

7. Are you having second thoughts about a purchase made at your door? It’s ok to change
your mind! Exercise your ‘cooling off’ rights and cancel the agreement within 10
business days.

8. Did you know that you can still shop around even after signing a door to door sales
agreement? Take advantage of the ‘cooling off’ period to make sure that this is the best
deal for you.

9. If you decide to cancel a door to door sales purchase during the ‘cooling off’ period,
keep a record of when you made the phone call or sent the notice.

10. Want to learn more about becoming a savvy shopper? Find out about your consumer
rights at www.accc.gov.au/forconsumers

Don’t want a sales agent knocking at your door? Place a prominent sign that states this
near your entrance. Order or download a ‘Do Not Knock’ sticker and other materials at
www.accc.gov.au/doortodoor
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